You need what is called kick out flashing at the end of the run. It directs water out ,away from the building and into the gutter.
You will need to remove the gutter, and poke into the hole to see if there is lots of deterioration. If there is not, repair it , but if there is, remove all the damaged area.
Good luck.

You need what is called kick out flashing at the end of the run. It directs water out ,away from the building and into the gutter.
You will need to remove the gutter, and poke into the hole to see if there is lots of deterioration. If there is not, repair it , but if there is, remove all the damaged area.
Good luck.

Thank you for the quick reply!

So the stucco would need to be repaired and a kickout flashing installed on top?

Is it possible to gauge the extent of the damage without removing the stucco? The exposed wood does not look rotten?

Is this crack a result of damage from water penetration, or something unrelated?